Merger of 50% DA issue: Dearness Allowance as Dearness Pay - Reply by FinMin in Rajya Sabha

Three questions were pending in parliament about hot issue of merger of 50% DA in basic pay of Central Governement Employees & Pensioner.  Question No. 4384 "Dearness Allowance as Dearness Pay" Question No. 4385 "DA merging issue" and Question No. 3139 "Merger of DA of Central Government Employees", now replied by Govt..

1.  Unstarred Question: No. 4384 - Dearness Allowance as Dearness Pay
GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-4384
ANSWERED ON-07.05.2013
Dearness Allowance as Dearness Pay
4384 . SARDAR BALWINDER SINGH BHUNDAR
(a) whether the earlier Pay Commissions for Central Government Employees had recommended that a certain percentage of Dearness Allowance to be treated as Dearness Pay;
(b) if so, the details thereof; and
(c) by when the salaried class as well as pensioners are likely to be benefited so as to overcome the hardship being faced by them to maintain their day-to-day household expenses?

ANSWER
Minister of State in the Ministry of Finance (E & FS) (Shri Namo Narain Meena)

(a)&(b) The 5th Pay Commission had recommended that Dearness Allowance should be converted into Dearness Pay each time the Consumer Price Index increases by 50% over the base index used by the last pay Commission. Accordingly the Government issued orders on 27.02.2004 for merging of 50% of the DA with the basic pay w.e.f.01.04.2004.

(c) The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. Hence the question to merge DA with basic pay does not arise. However, the rate of DA is being revised at periodic intervals.
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2. Unstarred Question No. 4385: DA merging issue


GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-4385
ANSWERED ON-07.05.2013
DA merging issue
4385. SHRI PRABHAT JHA

(a) whether Government is contemplating to merge 50 per cent of Dearness Allowance (DA) with basic pay in view of high inflation, steep rise in price of essential articles and miserable condition of Central Government employees;
(b) if so, the details thereof;
(c) if not, the reasons therefor; and
(d) the reasons for delay in announcement of DA rates effective from 1 January, 2013?

ANSWER
Minister of State in the Ministry of Finance (E & FS) ( Shri Namo Narain Meena)

(a) No Sir.

(b) Does not arise.

(c) The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.

(d) There is no time frame/date prescribed for announcement of Dearness Allowance. The revision of rate of Dearness Allowance is announced by the Government as and when approved by the Cabinet.

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3. Unstarred Question No. 3139: Merger of DA of Central Government Employees

GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-3139
ANSWERED ON-23.04.2013
Merger of DA of Central Government Employees
3139 . SHRI JAI PRAKASH NARAYAN SINGH, SALIM ANSARI
(a) whether it is a fact that Dearness Allowance (DA) of Central Government employees and pensioners is merged with the basic pay when it breaches the 50 % per cent cap;
(b)  if so, the details thereof; and
(c) the reasons for not merging the DA with basic pay as it has already breached 50 % per cent mark?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE (E&FS)
(SHRI NAMO NARAIN MEENA)

(a) No Sir.
(b) Does not arise.
(c) The 6th Central Pay Commission has recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.

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Source: Rajya Sabha Website